Tomahawk, WI 01/06/2014 (BasicsMedia) – Google Inc (NASDAQ:GOOG) latest move was to acquire Android alarm app developer Bitspin; this is the company behind Timely, a clock app that is available for Android users. Investors should understand that this is just not an ordinary app acquisition; instead, the Internet giant is in a defensive game.

Android is the leading platform among smartphone makers. However, this position appears under threat, and so is Google Inc (NASDAQ:GOOG)’s revenue and profits from this segment. The threat to this mobile OS is Windows Phone from Microsoft Corporation (NASDAQ:MSFT).

Microsoft Corporation (NASDAQ:MSFT) has all along wanted to dominate the smartphone operating system and the company is doing this by courting various smartphone makers with deals to ditch Android for its Windows Phone. Microsoft is current in talks with electronics giant Sony in which the latter will receive patent licensing incentives for manufacturing smartphones running on Windows Phone.

Microsoft Corporation (NASDAQ:MSFT) is also reported to be courting ZTE with similar deal. This means that over time Google Inc (NASDAQ:GOOG) may be left with just a small number of manufacturers building Android powered phones.

More threats to Android

The threat to the future of Android as the leading OS in smartphone goes beyond what Microsoft Corporation (NASDAQ:MSFT) is doing. Samsung Electronics could also ditch this platform for its future phones. Samsung and Intel Corporation (NASDAQ:INTC) and group of smartphone manufacturers including Fujitsu, NEC and LG are working on Tizen OS which these manufacturers will adopt for their future smartphones. If this association does culminate in the creation of a rival OS, it means that Google Inc (NASDAQ:GOOG) will have painful ramification in the mobile operating system market.


Given that reality of this threat, and the fact that over the past few years Google Inc (NASDAQ:GOOG) has been trying to take Android to higher levels in the mobile sphere, the company is now finding itself compelled to acquire promising technologies. The acquisition of Bitspin is not just centered on its alarm app, but the potential that it has in technology development. This potential will help Google Inc (NASDAQ:GOOG) counter the wave of the competitors.

Android is a very strategic investment for Google Inc (NASDAQ:GOOG). The company has always wanted to expand Internet coverage and also to lower the cost of Internet and the best way to do this is to penetrate the mobile market both with its software and hardware. Therefore, its strong grip on the mobile operating system was going to boost this aspiration.

The strategy is that as more people access the Internet, especially through friendly interface, they are able to add to Google Inc (NASDAQ:GOOG)’s ad revenue. However, as opposition to this strategy mount in the form of smartphone manufacturers switching to other mobile OS like Windows Phone and the promised Tizen OS, Google Inc (NASDAQ:GOOG) feels threaten.


Investors can keep a close eye on this stock for the coming months to see how it tackles challenges to Android. However, it is important to note that as a stock, Google Inc (NASDAQ:GOOG) has a lot of opportunities to reward investors this year even if Android were to remain under threat. The company is expected to launch its wearable computer called Google Glass. This device is already receiving positive reviews from the early adopters. There is no out that Google Glass will lead to significant incremental revenue for Google Inc (NASDAQ:GOOG) in the upcoming quarters going forward.

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